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Letters to the Editor: Subsidising Scotland

You suggest that Scotland is being subsidised by the rest of the UK, by virtue of receiving higher public spending per head than the UK average; you also refer to a comment by SNP leader Alex Salmond, to the effect that Scotland subsidises the rest of the UK by virtue of North Sea Oil Tax (NSOT) revenues (News and Focus, July 23).

Fortunately for the sake of Anglo-Caledonian relations, it appears both sides are on the wrong track. Based on current Treasury figures Scotland will receive around £7.5bn more than its share of the UK population would indicate.

Meanwhile, the Treasury forecasts that NSOT revenues will be £10.3bn. Around three quarters of this (ie £7.7bn) would normally be allocated to Scotland on a just and equitable basis. Thus the books appear broadly balanced.